Online Casino News and Information

BolaVerde Media Group (BVMG) recently released a new Internet Gambling Federal Lobbying report which estimates that $3.65 million was spent lobbying the U.S. government over online gambling during the third quarter of 2009. This was from both supporters and opponents. This money is a 50% increase from the previous year.

Mark Balestra, Managing Director for BVMG, states that they know that regulated internet gambling is going to happen and that they have a good feeling about who the big players will be in that market. He says that the increased lobbying spending is expected to continue this year and that new contributors will enter into the game.

 Leading the spending frenzy were Harrah’s Entertainment Inc., UC Group Limited and the Interactive Gaming Council. Their combined spending was $2.04 million, or 55.9% of the total. This is money spent in favor of online gaming.

As can be seen in the above figures, there are many on both sides of this debate. This includes the federal government. While many in the government are looking to repeal UIGEA, there are still many who want to keep online gambling illegal for U.S. citizens.

iGaming Business reports that Harrah’s spent $2.41 million in the fourth quarter of 2009 trying to overturn UIGEA. The total spent in the fourth quarter was a 50% increase compared to 2008.

“An assessment of lottery spend also lends insight into what the regulatory model will look like and who stands to benefit,” said Balestra.

Gambling, whether in land based casinos or online, is big business with millions of dollars at stake. It stirs peoples emotions and their wallets. That is why so much has been spent on repealing or enforcing UIGEA and why it will contunue to be spent until someone makes a decision.

The battle over the life or death of UIGEA is an ongoing battle that remains in the headlines. It would be wise for all players in the game to take a look at who is doing what to influence the decision making process.

Playtech, the largest supplier of online gaming software, has released the new, revolutionary Mobile Web Apps. This software brings many gambling games, such as Texas hold em poker, blackjack, craps, and video poker, straight to a cell phone or other personal mobile device. The software places a strong emphasis on security and safety.

Other games included in Playtech’s new app are bingo, and slots. This has mouths watering because Playtech already has large progressive jackpots running on this software.

The problem is that most U.S. subscribers haven’t been able to play gambling games on their mobile appliances because of UIGEA. Most online casinos and gambling companies stopped providing services to U.S. customers to avoid prosecution under UIGEA. Players who have tried Playtech are writing members of congress to repeal UIGEA so that they can play the new games.

Maryland lawmakers, caught in the middle of the war for gaming tables between Pennsylvania, Delaware and New Jersey, has entered into the fray itself. Yesterday, Maryland legislator Frank Turner proposed a bill which would authorize the games of blackjack and baccarat, among others.

The legislation is to change the Maryland constitution to allow table gambling, including poker. If the bill passes, it will be placed on the November ballot in November for the voters to decide the issue.

In the beginning, only New Jersey had legal gaming, in the form of Atlantic City. Then, to combat the tide of its residents spending their money in New Jersey, Delaware started to allow slot machines in Delaware race tracks. Pennsylvania then legalized land based casinos to offer slot machines. After Maryland upped the anti, allowing slots at it’s race tracks, Pennsylvania and Delaware passed laws allowing table gaming at their casinos.

So now Maryland has again upped the stakes by trying to legalized table gaming.  New Jersey, in the meantime, is suing the federal government to force it to allow the legalization of sports betting. It also has legislation pending which would allow casinos to offer intrastate online gambling.

Today Mastercard, which is a major form of depositing into online casinos, poker sites and all online gaming, being used by US citizens was widely blocked. Apparently Mastercard is clamping down on altered transaction codes.

Several major sites does not use Mastercard as a deposit method.

Altered codes came to Mastercard’s attention some time ago, back then gaming sites were able to figure their way around it in less than two months.

UIGEA created a lot of issues for the gambling operators, which could bring in hundreds of billions of dollars for the US economy. The UIGEA is not currently law due to being on a six month hiatus until the Federal Reserve figures out a way to deal with the almost impossible rules of the UIGEA.

Apparently Mastercard took it upon themselves to start some strict enforcement. It is not known whether they acted under pressure.

Other transaction methods are still available for means of deposit. But will Visa be next?

A bill was introduced earlier this month by New Jersey State Senator Raymond Lesniak which would regulate and legalize intrastate internet gambling. The bill specifically mentions online poker. Taking no chances, Lesniak also introduced a separate bill calling for a referendum to permit sports betting.

Items discussed at the hearing included the legality of internet gambling and sports betting in the U.S., reasons New Jersey should allow casino-based online gambling, and how to alleviate problems associated with problem gambling.

The New Jersey Senate Gaming and Tourism Committee held a hearing on Monday on whether or not to legalize online sports betting and internet gambling. Officials from the Interactive Media Entertainment and Gaming Association (iMEGA) were there.

iMEGA Chairman Joe Brennan stated that the hearing went well and he then spent the rest of the day talking to Republican and Democratic legislators about the intrastate internet gambling bill. This coming Monday, the committee will meet to talk about both measures and maybe approve one or even both of them.

Lesniak’s bill calls for licensed internet gambling companies to be taxed at a 20% rate. Land based casinos are taxed at 8%. The internet casinos would have to pay an up front initial licensing fee of $200,000 along with an annual renewal fee of $100,000. An additional $100,000 annual fee will be charged to online casinos to pay for a program to help compulsive gamblers.

Pressure is rising on New Jersey officials to do something about online gaming. Pennsylvania’s revenue from slot machines grew by 39% in January, while Delaware recently passed legislation allowing table games to be played in it’s casinos. New Jersey’s land based casinos have been losing gaming revenue

Also testifying at the hearing were officials form Harrah’s, which opposes both bills, and representatives from New Jersey’s horse racing industry.

Gov. Jack Markell, Governor of Delaware, signed the bill which allows the state’s three racetrack casinos to offer table games, on the evening of the day the bill was passed. A spokesman said that the games could be ready to play by summer at the states three racetrack casinos: Dover Downs, Harrington Raceway, and Delaware Park. At present, the racetrack casinos offer only slot machines.

This follows Pennsylvania’s passage of table gaming earlier this month. One gaming analyst estimates that the combination of Pennsylvania and Delaware offering table gaming could draw off as much as 15% of Atlantic City’s table revenue. He also said that the 2011 grand opening of the $2.5 billion Revel Casino in Atlantic City, coupled with an increase in the local economy, could negate much of that revenue drain.

The attendees at the recent iGaming Business Affiliate Awards program showed their generous hearts when they donated 65,000 British Pounds Sterling (about $103,371) to the Haitian relief effort. That amount was doubled by the Calvin Ayre Foundation, bringing the grand total for the donation to 130,000 pounds ($206,742).

The donation will be sent to Oxfam, in Oxfordshire. Oxfam is one of the companies spearheading relief efforts for the Haitian earthquake relief efforts. The money will be used for water, sanitation, (as in digging latrines), and health and shelter equipment. It will also be used to hire people to help in clearing the rubble and improving peoples living conditions. From the way that the men and women at iGaming Business Affiliate Awards program gave money, Calvin Ayre’s  message was heard loud and clear.

The recent IGE-ICEi trade exhibition in London was the background for several casino software providers to showcase their new goods. Buyers, as well as players, will have a lot to look forward to this year.

IGT subsidiary WagerWorks, showcased it’s newly released dual online and land casino slot game Monty’s Millions. Also shown was a soon to be released slot game named Kitty Litter. They also displayed their upgraded RGS platform, which allows WagerWorks games to be downloaded and played on other platforms.

Cryptologic, coming off its new deal with DC Comics, displayed giant models of Batman and Superman, who they are bringing to the reels. They showcased slot games based on the movies Forest Gump and Braveheart.

Cryptologic also showed off a new player protection program which will warn a blackjack player if the move he is making is not the optimal move available.

Microgaming showed off it’s recently released Hellboy slot game, which was released in conjunction with Dark Horse. Microgaming’s mobile gaming partner Spin3, announced a deal to expand into the Eastern European market with gambling company Rocketspin.

Playtech displayed games and casino management tools software developed with their two new partners: Scientific Games and Sportech.

The fight is on in Washington D.C. four Presidential appointments for Treasury Dept. positions are being held up by Arizona Republican Jon Kyl, to protest to protest a move by the Obama administration and the Federal Reserve to delay by six months the enforcement of regulations prohibiting gambling on the web.

Two of the appointments being held up are Lael Brainard to the position of Undersecretary of International Affairs, and Charles Collyns to the position of Assistant Secretary of International Finance.

Under Senate rules, any senator can put an indefinite “hold” on any political appointment.

The regulations in question were written following the passage of the Unlawful Internet Gambling Enforcement Act of 2006. The regulations were written in 2008 just before the Bush Administration left office.

After the inaugaration of President Barack Obama, the Treasury Dept. delayed the implementation of the regulations, intended to implement the anti-gaming law, at the request of Democratic Congressman Barney Frank. The rules will require financial institutions to have procedures in place to preventpayments being made to illegal gambling businesses. The rules are set to go into effect June 1, 2010.

The hold up of the appointments is hurting the Obama administration. Clay Lowery, Assistant Secretary of International Affairs under the Bush Administration, says that with these positions vacant, nobody below Secretary Geithner of Deputy Secretary Neal Wolin, will be able to represent the United States at the G7 or G20 international conferences.

In the past, the undersecretary of international affairs has played a central role in investigating and approving sensitive transactions.

The Treasury Dept. states that it is fully capable to handling it’s responsibilities even without these positions being filled.

The MGM Mirage, suffering from the poor economy in the sagging Atlantic City market, is setting itself up for an initial public offering on the Hong Kong Stock exchange. The offering could raise upwards of $1 billion. The idea is to sell shares of its 50% owned MGM Grand Macau.

 The problem is that MGM is partnered with Hong Kong business woman Pansy Ho, daughter of Macau casino giant Stanley Ho. And he has alleged ties to Chinese organized crime triads. So New Jersey gaming authorities want MGM to cut all ties to Pansy Ho and her father. So New Jersey want to hold public hearings on her suitability as a business partner. If they find she is not suitable, MGM would be forced to sell either its Macau or Atlantic City holdings.

 With the gearing up for a Hong Kong IP, it appears that MGM Mirage has already made its decision. In Atlantic City, it owns 50% of the Borgata and 72 acres in the Renaissance Pointe area. The 72 acre site is where MGM Mirage, in 2007, said it would build the MGM Grand Atlantic City for $5 billion. This was before the economy went sour.

 The other 50% of the Borgata is owned by Boyd gaming Corp, which has the first rights to buy up MGM’s 50% share. It’s plans are not known at this time.